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Price of bread to go up by GHC 1

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Price of bread to go up by GHC 1

Price of bread to go up by GHC 1

Price of locally manufactured bread will from next week Monday shoot up by one Ghana cedis (GHC1.00), executives of Ashanti Regional Flour Users Association have announced.

The soon to be effected increment in prices was sparked by the recent hikes in the market prices of flour and other products used in the baking of bread.

The new price per the decision of executives will not affect only bread but all pastries and consumable products made with flour.

Speaking exclusively with the President of the Association Madam Comfort Akotua, she indicated that the market price tagged on flour by flour milling companies has imposed an untold hardship on their business as their cost of bread production at the moment has gone up.

She told this journalist that a bag of flour which was sold to them by flour millers at the cost of GH 120 has now increased to GH 160, adding that within the space of one month prices of flour has witnessed increment for more than five times.

This she underlined has affected most players since majority are currently running at a loss, hence their decision to increases prices of bread and all other pastries.

Sharing his ordeal, the Director for Shallom Bakery Mr. Agyekum Michael disclosed that he sometimes run at a loss and has to cut down production in other to survive.

Apart from flour, prices of sugar, liquified petroleum gas, firewood, milk, butter plus other essentials needed for the baking of bread have gone up, cautioning that if government does not intervene, several players in the baking industry will quit the business.

Chief Executive Officer for Okyeso Nyame Bakery Madam Mavis Kwagyiri-Stiles also called on government to assist by subsidizing the prices of bakery products.

Source: Thepressradio.com

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Akufo-Addo is a transformational leader – Economist

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Akufo-Addo is a transformational leader – Economist

Mr Habibu Adam, an Economist, on Friday said President Nana Addo Dankwa Akufo-Addo is a transformational leader who’s like is yet to be witnessed in the fourth republic.

“Right from Election 2016 campaigns to his inaugural speech on January 7, 2017 to the first budget of the new administration, the rhetoric of the President has sort to portray him as a transformational leader not seen in the Fourth Republic,” Mr Adam told the Ghana News Agency in an interview.

Mr Adam, who is also a Senior Economist at the Office of the Senior Minister, said this is based on the State of the Ghanaian economy and two years into Nana Akufo-Addo’s Government- “What are the real issues? And Why Ghanaians should be patient”.

He said the President came to meet challenges – coming at a time that the economy was experiencing low growth, rising rate of unemployment, high fiscal deficits, high and rising debt, and increased depreciation of the cedi, high cost of food, housing and utilities and high non-performing loans amongst others.

He said President Nana Akufo-Addo also inherited an economy with symptoms of deeper structural problems that required a wide range of reforms.

“As usual with the United Party (UP) tradition, the agenda was set right from the inaugural speech. However, many doubted the capability of the government in carrying out its ambitious plans considering the International Monetary Fund’s (IMF) programme and the declining growth of most of the sectors of the economy.

“It is important to note that virtually all the targets set under the IMF programme have been missed as at the end of December, 2016. For instance, a Gross Domestic Product (GDP) growth (including oil) of 3.6 per cent was the lowest in 23 years- a deficit target of 5.3 per cent under the IMF programme was missed.

“The actuals were 9 per cent on cash basis and 10.2 per cent on commitment basis,” Mr Adam said.

The Senior Economist said Ghana’s total public debt from independence to 2008 (52years) stood at GH¢ 9.5 billion (33 per cent of GDP).

However, by 2016, the public debt had ballooned to GH¢ 122 billion (73.1 per cent or the revised figure of 56.6 per cent of GDP). Interest payment was about GH¢ 14.1 billion 6.2 per cent of GDP.

Mr Adam said the difficulty faced by Nana Akufo-Addo’s government was that three budget items consisting of wages and salaries, interest payments and amortization and statutory payments consisted 105 per cent of government revenue.

“This means that government had additional 5 per cent to meet the three budgetary items,” he said.

He said the state of the Ghanaian economy was akin to the ‘HIPC’ economy the Former President John Agyekum Kufour’s government inherited in 2001 except that there was no HIPC benefits this time since Ghana is now a Middle-Income Economy.

“The only alternative left for the Nana Akufo-Addo’s government was to borrow initially to stabilize the economy before pursuing its growth agenda.

“This is the most popular option among Keynesian Economists. Hence, the rise in public debt for the first two years of the current administration.

“The good news is that while in the past we could not relate the debts to projects or programmes in proportional terms, the current administration now provides the lists of all the borrowed funds to specific projects and programmes,” Mr Adam added.

Source: GNA

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Maintain freeze on public sector employment after IMF exit – Economist

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Maintain freeze on public sector employment after IMF exit – Economist

Maintain freeze on public sector employment after IMF exit – Economist

The government has been warned to resist any temptation to lift the ban on employment into the public sector at the end of the International Monetary Fund (IMF) programme on April 2.

Speaking to Citi News, Economist at the University of Ghana, Dr. Ebo Tuckson said Ghana needs to move beyond government being the main supplier of jobs.

“We shouldn’t, once we leave, freeze public sector employment because when we do that, then we inflate the wage bill. That is one of the main reasons for expenditures that normally cause us to run huge fiscal deficits.”

“We should rather provide the environment for the private sector to thrive; for the private sector to generate employment and jobs that the economy needs,” the lecturer said.

In 2015, the three-year loan agreement concluded between the Government and the International Monetary Fund (IMF) contained agreements to freeze employment in government departments except for those under education and health.

This was part of measures to stabilize the economy and effectively manage the public wage bill.

The agreement was also expected the government to limit the nominal increase in the total wage bill to no more than 10 percent.

Ahead of the election in 2020, Dr. Ebo Tuckson also urged the government to be measured in its spending so it does not overrun the estimated budget for the year.

“If you look back over the fourth republic, with the exception of President Kufuor in his second election, where he was able to maintain the budget and not overrun it, all other government’s we have had have overrun their budget… The politicians, you know, when things heat up and things have to be done, that is when we sacrifice all these things and overrun the budget.”

IMF journey ends

The Executive Board of the IMF just approved the final disbursement of about US$185.2 million to Ghana.

The IMF Executive Board completed the seventh and eight reviews on March 20, 2019, under the Extended Credit Facility (ECF) supported arrangement.

The fund pointed out that, considering Ghana’s resolve to tackle difficult reforms, the Executive Board also approved the authorities’ request for a waiver of the nonobservance of a few program targets.

Ghana’s three-year arrangement was approved on April 3, 2015, for about US$925.9 million or 180 percent of quota at the time of approval of the arrangement.

It was extended for an additional year on August 30, 2017, and is to end on April 2, 2019.

The arrangement aimed to restore debt sustainability and macroeconomic stability in the country to foster a return to high growth and job creation while protecting social spending.

Source: citinewsroom.com

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Bawumia to engage Ghanaians on country’s economy on April 3

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Bawumia to engage Ghanaians on country’s economy on April 3

Vice President Dr Mahamudu Bawumia and Head of the Government’s Economic Management Team, will on April 3, lead government team to a Town Hall Meeting at the College of Physicians and Surgeons to answer questions from the public on government policies and programmes.

The meeting, under the auspices of the Ministry of Information, would enable government officials, including state actors such as Ministers of State, Metropolitan, Municipal and District Chief Executives and heads of agencies to provide account of their stewardship and provide vital information to the public.

It would also afford Ghanaians the opportunity to ask pertinent questions bordering on the various sectors of the economy and make contributions towards the governance process.

Mr Kojo Oppong-Nkrumah, the Information Minister, addressing journalists at a media encounter in Accra on Wednesday, said the maiden town hall meeting would come off on March 29 at Kasoa Datus School Park.

He said a total of 24 separate town hall meetings would be organised across the country this year.

The Minister said the town hall meetings were designed to bring governance closer to the people and showed a major shift in the government policy to make information accessible and useable by both Ghanaians within and in the Diaspora.

The town hall meetings, he said, would be accompanied by exhibitions by the Information Services Department that would provide pictorial and audio visuals of government activities over the past two years.

Mr Oppong-Nkrumah also used the media encounter to brief journalists about the Vice President’s official visit to India, to participate in the 14th Confederation of India Industries EXIM Bank on India-Africa Partnerships held in New Delhi, India.

Vice President Bawumia encouraged more investments for the country and held separate meeting with the India EXIM Bank officials.

During the meeting, Mr Oppong-Nkrumah said the Vice President signed a $150 million financing facility for agricultural mechanisation in Ghana and a $30 million facility for the Yendi water project.

The Minister explained that the $150 million facility would be used for provide equipment and training for the various agriculture mechanisation centres and service of equipment centres for access to farmers, while financing of the Yendi water project would aid in ensuring rapid socio-economic development in the area following the peaceful resolution of the age-long chieftaincy litigation.

Source: 3news.com

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